Australia’s spot as China’s top source for iron ore under threat as new mega ports open door for Brazil and Africa
- Chinamax ships used by Brazilian mining giant Vale, as well as miners in Africa, can carry half again as much cargo as normal ore ships
- Australia shipped a record amount of iron ore to China in June, with total iron ore exports accounting for a quarter of the country’s overall goods exports
Australia’s share of China’s iron ore imports may be at risk following the opening of four new ports along China’s coast that can operate berths for extra-large ships, opening up new possibilities for greater imports from Brazil and Africa.
Very large ore carriers operated by Brazilian mining firms – called Chinamax ships because they are the largest ships China’s ports can handle – are bigger than many skyscrapers and can carry half again the cargo of normal iron ore transport ships, up to 400,000 tonnes, meaning they reduce transport costs and delivery time.
Australian miners largely use Capesize ships ranging from 250,000 to 300,000 deadweight tonnage (dwt) to transport their ore to China.
The four new terminals that can berth ships up to 400,000 dwt are in Rizhao, Yantai and Lanshan in Shandong province, and Sanduao in Fujian province, according to Chinese metals market data specialist Mysteel Global, and add to seven ports in China that can already handle the super large ships.